From The Motley Fool · Brendan Coffey · · 1m 50s
Chewy vs. Shopify: Better Buy for 2027
Which e-commerce stock offers better value through 2027: Chewy's steady growth or Shopify's high-growth premium?
In brief
Which e-commerce stock offers better value through 2027: Chewy's steady growth or Shopify's high-growth premium? Chewy provides stable pet care subscriptions with 7% sales growth to $13.5 billion by 2027, while Shopify shows rapid expansion but trades at a 78.7x P/E ratio. Originally reported by The Motley Fool.
Chewy's Market Position
Chewy dominates pet e-commerce with high-volume Autoship subscriptions and expanding healthcare services.
“Chewy provides a comprehensive e-commerce platform dedicated to pet products, prescriptions, and veterinary services.”
Shopify's Global Reach
Shopify powers digital infrastructure for millions of merchants across 175+ countries with integrated payment and capital tools.
“Shopify provides the essential internet infrastructure that allows millions of merchants to run businesses across more than 175 countries.”
Chewy Financials
Chewy reported $13.1 billion revenue and $273.7 million net income for the 12 months ended August 2026.
“In the 12 months ended Aug. 2, 2026, revenue reached around $13.1 billion, representing a growth rate of approximately 5.9%.”
Shopify Financials
Shopify reported $14.2 billion revenue and $2.1 billion net income for the 12 months ended September 30, 2026.
“In the 12 months ended Sept. 30, 2026, revenue reached about $14.2 billion, fueled by a growth rate of around 32.5%.”
Chewy's Debt Profile
Chewy has a debt-to-equity ratio of 1.0x and free cash flow of $562.4 million, with stock-based compensation accounting for 43.1% of cash flow.
“As of its February 2026 balance sheet, the debt-to-equity ratio was approximately 1.0x.”
Shopify's Debt Profile
Shopify maintains a debt-to-equity ratio of 0.0x and free cash flow of $2.0 billion, with stock-based compensation at 22.1% of cash flow.
“As of its December 2025 balance sheet, Shopify maintained a debt-to-equity ratio of 0.0x.”
Chewy's Growth Strategy
Chewy targets pet health services expansion and acquired Modern Animal to boost profitability in veterinary care.
“The business recently closed on the acquisition of Modern Animal, which delivers high profitability per location and is a strong complement to Chewy's existing business.”
Shopify's Growth Strategy
Shopify aims to expand into Europe and leverage agentic AI merchandising for 30% annual revenue growth through 2027.
“Shopify supports the UCP from the Google arm of Alphabet, designed to enable agentic AI commerce by allowing AI agents to interact with merchant systems throughout the shopping journey.”
2027 Forecast for Chewy
Chewy projects 7% sales growth to $13.5 billion and 40% net income increase to $317 million by 2027.
“For fiscal 2027, sales are seen rising 7% to $13.5 billion, with net income up more than 40% to around $317 million, according to consensus analyst estimates.”
2027 Forecast for Shopify
Shopify expects low-30% annual revenue growth through 2027, with a focus on European expansion and AI-driven commerce.
“Management projects low-30% annual revenue growth for the current year.”
Investment Comparison
Chewy offers more affordable valuation with a 29.2x forward P/E ratio versus Shopify's 78.7x, despite Shopify's faster growth.
“Chewy appears much more affordable on both earnings and sales metrics, whereas Shopify carries a premium price reflecting its much faster growth rates.”
What matters most
Chewy provides stable pet care subscriptions with 7% sales growth to $13.5 billion by 2027, while Shopify shows rapid expansion but trades at a 78.7x P/E ratio.
